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Document of The World Bank Public Disclosure Authorized Report No: ICR00003842 IMPLEMENTATION COMPLETION AND RESULTS REPORT (IBRD-78980) ON A Public Disclosure Authorized LOAN IN THE AMOUNT OF US$100 MILLION TO THE PEOPLE’S REPUBLIC OF CHINA FOR A NANNING URBAN ENVIRONMENT PROJECT Public Disclosure Authorized April 11, 2017 Water Global Practice China and Mongolia County Management Unit East Asia and Pacific Region Public Disclosure Authorized CURRENCY EQUIVALENTS (Exchange Rate Effective September 20, 2016) Currency Unit = Chinese Yuan (CNY) CNY 1.00 = US$0.149 US$1.00 = CNY 6.672 FISCAL YEAR January 1 – December 31 ABBREVIATIONS AND ACRONYMS ASEAN Association of Southeast Asian Nations BOD Biochemical Oxygen Demand CAST Conventional Activated Sludge Treatment COD Chemical Oxygen Demand CPS Country Partnership Strategy DRC Development and Reform Commission EA Environmental Assessment EIRR Economic Internal Rate of Return EMP Environmental Management Plan EPB Environmental Protection Bureau FIRR Financial Internal Rate of Return GDP Gross Domestic Product GNWC Guangxi Nanning Water Company Ltd. GUEP Guangxi Urban Environment Project ICR Implementation Completion and Results Report IRBM Integrated River Basin Management ISR Implementation Status and Results Report M&E Monitoring and Evaluation MLAS Minimum Living Allowance Subsidy MSBR Modified Sequencing Batch Reactor O&M Operation and Maintenance PAD Project Appraisal Document PAP Project-Affected People PDO Project Development Objective PIU Project Implementing Unit PMO Project Management Office RAP Resettlement Action Plan SBR Sequencing Batch Reactor TA Technical Assistance TN Total Nitrogen ii TP Total Phosphorus WWTP Wastewater Treatment Plant Senior Global Practice Director: Guang Zhe Chen Practice Manager: Sudipto Sarkar Project Team Leader: Victor Vazquez ICR Team Leader: Toyoko Kodama iii CHINA Nanning Urban Environment Project Table of Contents Data Sheet A. Basic Information ....................................................................................................................... v B. Key Dates ................................................................................................................................... v C. Ratings Summary ....................................................................................................................... v D. Sector and Theme Codes ........................................................................................................... vi E. Bank Staff .................................................................................................................................. vi F. Results Framework Analysis .................................................................................................... vii G. Ratings of Project Performance in ISRs .................................................................................. xv H. Restructuring (if any) .............................................................................................................. xvi I. Disbursement Profile ............................................................................................................. xvii 1. Project Context, Development Objectives, and Design .............................................................. 1 2. Key Factors Affecting Implementation and Outcomes .............................................................. 4 3. Assessment of Outcomes .......................................................................................................... 11 4. Assessment of Risk to Development Outcome ......................................................................... 19 5. Assessment of Bank and Borrower Performance ..................................................................... 20 6. Lessons Learned........................................................................................................................ 22 7. Comments on Issues Raised by Borrower/Implementing Agencies/Partners........................... 23 Annex 1. Project Costs and Financing .......................................................................................... 25 Annex 2. Outputs by Component.................................................................................................. 26 Annex 3. Economic and Financial Analysis ................................................................................. 31 Annex 4. Bank Lending and Implementation Support/Supervision Processes ............................. 37 Annex 5. Stakeholder Workshop Report and Results ................................................................... 39 Annex 6. Summary of Borrower’s ICR and/or Comments on Draft ICR .................................... 40 Annex 7. List of Supporting Documents ...................................................................................... 49 Maps CHN36710, CHN36711, CHN37067 iv A. Basic Information Nanning Urban Country: China Project Name: Environment Project ID: P108627 L/C/TF Number(s): IBRD-78980 ICR Date: 12/19/2016 ICR Type: Core ICR GUANGXI Lending Instrument: SIL Borrower: PROVINCIAL GOVERNMENT Original Total USD 100.00M Disbursed Amount: USD 97.51M Commitment: Revised Amount: USD 100.00M Environmental Category: A Implementing Agencies: NANNING PMO Cofinanciers and Other External Partners: n.a. B. Key Dates Revised / Actual Process Date Process Original Date Date(s) Concept Review: 11/25/2008 Effectiveness: 10/22/2010 10/18/2010 Appraisal: 06/01/2009 Restructuring(s): 09/27/2015 Approval: 06/01/2010 Mid-term Review: 11/15/2013 11/25/2013 Closing: 12/31/2015 06/30/2016 C. Ratings Summary C.1 Performance Rating by ICR Outcomes: Moderately Satisfactory Risk to Development Outcome: Moderate Bank Performance: Moderately Satisfactory Borrower Performance: Moderately Satisfactory C.2 Detailed Ratings of Bank and Borrower Performance (by ICR) Bank Ratings Borrower Ratings Quality at Entry: Moderately Satisfactory Government: Satisfactory Implementing Quality of Supervision: Moderately Satisfactory Moderately Satisfactory Agency/Agencies: Overall Bank Overall Borrower Moderately Satisfactory Moderately Satisfactory Performance: Performance: v C.3 Quality at Entry and Implementation Performance Indicators Implementation QAG Assessments (if Indicators Rating Performance any) Potential Problem Project Quality at Entry No None at any time (Yes/No): (QEA): Problem Project at any time Quality of Supervision No None (Yes/No): (QSA): DO rating before Satisfactory Closing/Inactive status: D. Sector and Theme Codes Original Actual Sector Code (as % of total Bank financing) Public administration - Water, sanitation and flood protection 3 3 Other Water Supply, Sanitation and Waste Management 33 33 Wastewater Collection and Transportation 32 32 Sanitation 32 32 Theme Code (as % of total Bank financing) Environmental policies and institutions 5 5 Pollution management and environmental health 90 90 Water resource management 5 5 E. Bank Staff Positions At ICR At Approval Vice President: Victoria Kwakwa James W. Adams Country Director: Bert Hofman Klaus Rohland Practice Manager/Manager: Sudipto Sarkar Ede Jorge Ijjasz-Vasquez Project Team Leader: Victor Vazquez Alvarez Takuya Kamata ICR Team Leader: Toyoko Kodama ICR Primary Author: Toyoko Kodama vi F. Results Framework Analysis Project Development Objectives (from Project Appraisal Document) The project development objective is to assist Nanning Municipality, in Guangxi Zhuang Autonomous Region, in arresting further deterioration of surface water quality in selected urban centers by expanding the coverage of wastewater treatment services, carrying out environmental rehabilitation of rivers, and improving the institutional and regulatory capacities of the municipal agencies. Revised Project Development Objectives (as approved by original approving authority) The PDO was not revised. (a) PDO Indicator(s) Original Target Actual Value Formally Values (from Achieved at Indicator Baseline Value Revised approval Completion or Target Values documents) Target Years Indicator 1: Direct project beneficiaries (number) Value (Quantitative or 0 2,500,000 2,955,755 Qualitative) Date achieved 12/31/2008 06/30/2016 06/30/2016 Comments 118% achieved. The indicator was added at the project restructuring in September (incl. % 2015. achievement) Indicator 2: Percentage of female beneficiaries (%) Value (Quantitative or 0 48 48.49 Qualitative) Date achieved 12/31/2008 06/30/2016 06/30/2016 Comments (incl. % 101% achieved. The indicator was added at the project restructuring. achievement) Percentage of population in participating areas of Nanning Municipality served by Indicator 3: wastewater collection and treatment services (%) Value (Quantitative or 36.60 77.1 75.5 89.19 Qualitative) Date achieved 12/31/2008 12/31/2015 06/30/2016 06/30/2016 Comments Revised target 118% achieved. The baseline and target values were also revised in the (incl. % project restructuring. achievement) Volume (mass) of BOD pollution loads removed by the treatment plants supported Indicator 4: under the project (tons/year) Value (Quantitative or 6,447 9,715 10,305 Qualitative) Date achieved 12/31/2008 06/30/2016 06/30/2016 vii Comments 106% achieved. The indicator was added at the project restructuring to (a) add up all (incl. % the targets of all the plants of the project and (b) account for more realistic influent achievement) wastewater characteristics. Indicator 5: Length of urban rivers in the project area rehabilitated (km) Value (Quantitative
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